Ship of Theseus

How companies change over time but remain

Albert Einstein is famous for many reasons including his prodigious use of thought experiments. He recalled even at the young age of 16 thinking about chasing a beam of light and asking himself what would happen if you could catch up to a beam of light as it moved. This thought experiment played a memorable role in his development of special relativity. However, Einstein wasn’t even close to being the first person to use thought experiments. It is believed that Heraclitus, an ancient Greek pre-Socratic philosopher, used them and possibly came up with the Ship of Theseus thought experiment but it was documented by Plutarch, a Greek Middle Platonist philosopher in Life of Theseus, one of the 48 biographies that he wrote. 

The Ship of Theseus thought experiment raises questions about identity and change. The paradox considers whether a ship that has had all of its components replaced over time remains fundamentally the same ship. The story tells of the ship belonging to Theseus, the mythical king and founder-hero of Athens. Over the years, as the ship's wooden parts decayed, they were replaced with new ones, until not a single original part remained. This scenario prompts a philosophical inquiry into the nature of objects and their identity: does the ship retain its original identity through all the changes, or does it become a completely different entity? The Ship of Theseus paradox explores the concepts of continuity, identity over time, and the metaphysical question of what it means for an object to remain the same despite changes. Plutarch’s summation of this paradox in Life of Theseus 23.1 states:

The ship wherein Theseus and the youth of Athens returned from Crete had thirty oars, and was preserved by the Athenians down even to the time of Demetrius Phalereus, for they took away the old planks as they decayed, putting in new and stronger timber in their places, insomuch that this ship became a standing example among the philosophers, for the logical question of things that grow; one side holding that the ship remained the same, and the other contending that it was not the same.

I believe that organizations, firms, and companies are Ships of Theseus. Over time, the individuals, processes, and technologies within these entities evolve, prompting us to question the essence of their identity. Much like the Ship of Theseus, which underwent complete renewal yet stirred debates about its continuous identity, organizations experience transformations in their workforce, strategies, and operational tools. This dynamic process invites us to consider what truly constitutes an organization's core identity. Is it anchored in the original principles upon which it was founded, the current composition of its elements, or perhaps something more ethereal that surpasses both? Arguably, akin to the Ship of Theseus, it's not the tangible aspects — such as personnel, workflows, or technological assets — that preserve an organization's identity. Instead, it's the enduring mission, underlying values, and prevailing culture that imbue an organization with its unique character. Through this prism, an organization's true essence lies in its resilience, its capacity for innovation, and its adherence to a fundamental vision, all of which are crucial for sustaining its significance and impact in a fluid world.

Most states in the US employees are “at-will” employees, meaning that employers can fire them at any time, for any or no reason, as long as it's not illegal. Montana is the exception to this in the US. The reason for termination cannot be illegal, which includes: discrimination based on race, sex, age (40 and over), nation of origin, disability, or genetic information. This “at-will” employment does not apply to everyone. For example it does not include employees who have a signed contract, are part of a union's collective bargaining agreement, or are in the public sector. In 2023 we saw a dramatic rise in layoffs where employers took advantage of this “at-will” employment. There were as many as 721K layoffs last year, according to outplacement firm Challenger, Gray, and Christmas. Clearly employees need to be ready to leave when a company no longer needs our service. However, the reverse is also true. Companies need to be ready when employees decide to move on. While losing a job or losing an employee is tough for the individual and the team, it isn’t always a bad thing for the overall industry.

Author, professor, and former Dean of the UC Berkeley School of Information, AnnaLee Saxenian argues in her book Regional Advantage, that the movement of employees from one firm to another is advantageous to all companies in that industry. The problem Saxenian investigates is the continued vitality and growth of the electronics and computer industry in Silicon Valley compared to the relative stagnation and decline of the industry along the Route 128 corridor in Massachusetts in the 1970s. The key differences, she finds, are in Silicon Valley's open networks of communication and exchange across firms compared to the more autarkic and vertically integrated structure of Route 128 companies. In arguing why Silicon Valley was more successful than Boston’s Route 128, she states, “Silicon Valley was quickly distinguished by unusually high levels of job-hopping. During the 1970s, average annual employee turnover exceeded 35 percent in local electronics firms and was as high as 59 percent in small firms...As a result, Silicon Valley’s engineers developed stronger commitments to one another and to the cause of advancing technology than to individual companies or industries.”

Companies are analogous to the Ship of Theseus metaphor and this is a good thing. Despite the turnover of employees or the change of processes, the mission and culture can remain. All the while, the company can benefit from the increased collective knowledge in the industry gained by the movement of employees across companies. 

This dynamic of continual change, akin to the Ship of Theseus, enables organizations to adapt and evolve in response to the shifting landscapes of their respective industries. With new employees come fresh ideas, perspectives, and skills that can stimulate innovation and drive the company forward. Similarly, updating processes and adopting new technologies can enhance efficiency and competitiveness. The key is maintaining the core mission and culture as the guiding compass of the organization, ensuring that despite the flux in its components, the foundational identity and values of the company remain intact. This not only preserves the essence of the organization but also positions it to capitalize on the collective advancements and knowledge within the industry, thereby fostering a culture of continuous improvement and growth. 

For the employee, this can also be a good thing. Data from the Office for National Statistics (ONS) in the UK reveals that individuals who switch jobs within a year of starting a position experience greater growth in their hourly wages compared to those who remain in the same role. This trend is especially pronounced among workers aged 16 to 24, who see the most significant salary increases. Similarly, in the US, an examination of 18 million workers' salaries indicated that, in 2021, the earnings of employees who changed jobs surpassed the earnings growth of those who stayed put, with some industries witnessing nearly a 12% increase in pay for job switchers. In my opinion, there are some downsides to “job-hopping”, which include the additional stress of starting new positions. I’ve also found that for individuals who wish to switch from one professional track to another, say from customer support to product management, it is easier at a company that sees them as a high-performer. A brand new employer who doesn’t know the employee well, might be reluctant to give them a chance in a new role. Employers typically look for people who have done the job or something very similar before. 

The interplay between employee mobility and organizational evolution reflects a symbiotic relationship that mirrors the philosophical depths of the Ship of Theseus. This metaphor extends beyond mere academic contemplation, finding practical resonance in today's dynamic work environments. Companies that embrace the inevitability of change, nurturing a culture that both preserves core values and adapts to new ideas and practices, position themselves at the forefront of industry innovation and sustainability. Likewise, employees who navigate their careers with a willingness to explore new opportunities contribute not only to their personal growth but also to the broader ecosystem of their professions. The fluidity of job markets, underscored by the significant wage benefits associated with strategic job changes, underscores the value of adaptability on both individual and organizational levels.

Yet, this landscape is not without its challenges. The potential stress of frequent transitions and the barriers faced when seeking to pivot within one's career path highlight the complexity of the modern job market. Despite these hurdles, the overarching narrative is one of opportunity — for businesses to evolve through the infusion of fresh talent and perspectives, and for individuals to advance their careers through strategic moves. The essence of an organization, much like the Ship of Theseus, is not diminished by change but is instead redefined and strengthened by it. As we move forward, the ability of both employers and employees to navigate the delicate balance between stability and change will continue to shape the future of industries, driving innovation and growth in an ever-evolving world.